Certified Government Financial Manager (CGFM) Practice Exam 2026 - Free CGFM Practice Questions and Study Guide

GASB Concept Statement 2 provides a framework for how performance measures should be reported by state and local governments. This statement emphasizes the importance of accountability and transparency in governmental operations, ensuring that stakeholders are informed about the effectiveness and efficiency of government programs. The concept encourages the use of performance measures to assess the outcomes and quality of services provided, allowing for better decision-making and resource allocation.

The focus on performance measure reporting distinguishes this guideline from others, which might address broader or different aspects of government operations. While mandatory reporting requirements and financial audits indicate regulatory and oversight aspects, and materials in government accounting pertain more to technical standards, GASB Concept Statement 2 hones in specifically on how performance metrics can enhance the understanding of governmental effectiveness. This makes the focus on performance measure reporting both crucial and relevant for evaluating how well governments fulfill their responsibilities.